Create a Host and Cluster Folder
To start with the task, go in to your vCenter web client. In the Hosts and Clusters page, right-click the datacenter on the left pane and go to New Folder > New Host and Cluster Folder.
A window will appear and give the folder name as you preferred. Press OK if you are done.
After the folder is created, drag your ESXi host on the left pane in to the newly created folder. As you can see, the ESXi host is now moved inside the folder.
Create Virtual Machine and Template Folders
From the left pane, choose the VMs and template tab which is the second from left.
Right-click on the datacenter and go to New Folder > New VM and Template folder.
Fill in the folder name as preferred then press OK. The folder is now created and the VMs inside the ESXi is shown there.
If you try to right-click the VM and template folder and the Host and Cluster folder, you would differences in its options. The folder are options are specialized for its own category. For Host and Cluster folder, we can see it mainly supports the actions for creating host and cluster. For VM and Template folder, it mainly contains actions for VM and template administration.
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